Desco Infratech Reports 86% Revenue Surge in H1 FY26, Eyes INR 1,000 Crore Revenue by 2030

Desco Infratech Limited , a leading player in the infrastructure development sector, has reported a robust financial performance for the first half of FY26, with total income soaring to INR 42.03 crores, marking an impressive 86% year-on-year growth from INR 22.63 crores in the same period last year.

Financial Highlights

The company's strong performance was primarily driven by its city gas distribution (CGD) projects and expansion into power transmission segments. Here's a breakdown of the key financial metrics:

Metric	H1 FY26	H1 FY25	YoY Growth
Total Income	42.03	22.63	86.00%
EBITDA	8.98	4.96	81.00%
PAT	6.17	3.24	90.00%
EBITDA Margin	21.38%	21.94%	-56 bps

Order Book and Revenue Guidance

Desco Infratech maintains a healthy order book exceeding INR 345 crores, with the majority coming from the CGD sector. The company has provided a full-year revenue guidance of INR 108-115 crores for FY26, indicating strong growth momentum.

Operational Expansion

The company has significantly expanded its operations, now spanning 55 sites across more than 13 states in India. Desco has laid over 4,000 kilometers of pipeline, showcasing its extensive reach and execution capabilities.

Strategic Partnerships

Desco Infratech has forged strategic partnerships with industry leaders, including Adani, BPCL, and Torrent Gas. These collaborations are expected to drive future growth and expand the company's market presence.

Diversification and Future Outlook

While CGD remains the core focus, contributing about 65-70% of revenue, Desco is diversifying into power transmission and distribution, and compressed biogas (CBG) segments:

Power Transmission: Expected to contribute 18-20% of revenue in the current year, with potential to reach 30-35% in the next three years.
Compressed Biogas: Through its wholly-owned subsidiary, Desco Bio Green Private Limited, the company plans to start CBG production with a 3-5 tons per day capacity within the next year.

Long-term Vision

Malhar Desai, Whole Time Director of Desco Infratech, reaffirmed the company's ambitious target of achieving INR 1,000 crore revenue by 2030. This growth is expected to be driven primarily by the CGD sector, followed by CBG and power transmission segments.

Challenges and Strategies

The company acknowledged a temporary negative operating cash flow in H1 FY26, attributed to strategic pre-mobilization advances and expansion into new geographies. Management expects this to improve in H2 FY26 and is in discussions with banks for additional working capital facilities to support growth.

Despite the cash flow challenges, Desco Infratech maintains a healthy debt-to-equity ratio of 0.1x, demonstrating its focus on sustainable growth and financial prudence.

As Desco Infratech continues its growth trajectory, it remains committed to executing its diverse project portfolio efficiently while maintaining strong margins and exploring new opportunities in the infrastructure sector.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.97%	-0.45%	-7.46%	-9.23%	+24.40%	+24.40%

Desco Infratech Limited , a company listed on the Indian stock exchanges, is set to witness a significant change in its shareholding pattern through an inter-se transfer within its promoter group.

Key Details of the Share Transfer

Aspect	Details
Acquirer	Pankaj Pruthu Desai
Transferor	Indiraben Pruthubhai Desai
Number of Shares	23,82,354
Voting Rights	31.04%
Mode of Transfer	Gift Deed
Scheduled Date	On or after November 20, 2025
Type of Transfer	Off-market inter-se transfer

Transaction Specifics

The share transfer involves a substantial portion of Desco Infratech's equity, amounting to 31.04% of the company's voting rights. This move represents a significant shift within the company's promoter group, although it does not change the overall promoter holding in the company.

Lock-in Period Considerations

It's important to note that the shares involved in this transaction are currently under a lock-in period. The acquirer, Pankaj Pruthu Desai, has committed to comply with any residual lock-in requirements that may be applicable to these shares after the transfer.

Implications

While this transfer does not introduce new ownership to the company, it does represent a consolidation of control within the promoter family. Such transfers can sometimes signal succession planning or realignment of interests within the promoter group.

Shareholders and market participants may want to monitor any potential changes in the company's management or strategic direction that could follow this significant intra-promoter share transfer.

As this is a planned future event, investors should stay informed about any updates or changes to the transfer details as the scheduled date approaches.